Tether mints millions of dollars worth of USDT, pushing the total supplied over the past three months to $627 million. Approximately $180 million worth of USDT was minted over 48 hours.
For the second day in a row 60,000,000 USDT has been minted. According to sources, the USDT is being used for ‘inventory replenishment’.
To the surprise of the public, Tether has chosen to add new USDT to the markets despite recent increases in selling pressure on Bitcoin.
The minting of the coins could serve as an indication of future Bitcoin demand. Historical trends show that there is a correlation between Bitcoin price performance and the timing of USDT issuance. Days after new coins are issued, BTC prices typically rise.
According to the CEO of Three Arrows Capital Su Zhu,
“With zero interest rates on USD, I predict massive global inflows into stable coins as there is no longer any opportunity cost to holding stable coins vs leaving cash in the bank. With the ongoing hyper-devaluation of emerging market currencies, this will be their first exit.”
Over a period of three months, Tether has increased the circulating supply of USDT by 13.3%.
Bitcoin and Crypto Analytics Group, Unfolded says
“In less than 3 months Tether circulating supply grew by 13.3% or $627m USDT got added into circulation. Last 24h $161m USDT got minted,”
Big moves are being made in markets as crypto-giants try to restrategize in the face of heightened volatility and coronavirus scares.
Recently, MakerDao governance approved the use of USD Coin (USDC) stablecoin as collateral in the Maker Protocol. The decision was made with the purpose of reducing liquidity risks.
Bitcoin prices are on the rise after crashing down. Experts suggest events such as the coronavirus crisis will be a test of the cryptocurrency’s ability to ride the waves of the global market.